THIRUVANANTHAPURAM: Despite assurances of cancelling the irregular long-term power contract, KSEB had not made arrangements to increase electricity generation or adopt alternatives. KSEB is in trouble as contractors are asking for higher prices. It is argued that if cancelled contracts are reinstated, double price should be paid. If this is approved, the electricity tariff in the state will have to be increased sharply.

A long-term contract was signed in 2014 at Rs 4.29 per unit. The contractors claim that if the contract should continue, they need Rs.9. The Regulatory Commission has demanded to produce proof of this within a week. KSEB will have to take a stand on the rate if evidence is provided.

Electricity is not available at the rate of Rs 4.29 now. No one quoted below Rs.6 in the tenders invited by KSEB two months ago for short-term and long-term contracts. Therefore, an argument is there that the demand of the contractors to increase the rate should be considered. However, KSEB had not officially informed the contractors of the cancellation of the contract and the attempt to restore it was successful as well.

In this situation, the argument of increasing the rate and not providing electricity at the old rate is a breach of contract. Apart from taking legal action against it, a complaint can also be lodged with the central government. The second argument is that it can be requested to block the coal the contractors receive. If the rate has to be increased, permission from the government has to be sought.

Production not being increased

The government has also accused KSEB of showing reluctance to increase production even when there is an electricity crisis. Despite Minister K Krishnankutty's repeated requests for the timely completion of hydropower projects, there is no result. The Bhoothathankettu hydropower project is being stalled due to an internal dispute in KSEB. The project can generate 24 MW of electricity if 12 crores more is spent.

The deadline for completing the 60 MW Pallivasal and 40 MW Thottiyar hydropower projects has been extended several times. 13 small projects with a capacity of 125 MW including 110 KV Nemmara-Kalappetty, 110 KV Palode and 220 KV Pallivasal are still on paper. 25 small projects under construction are crawling. Bhoothathankettu and Peringalkuthu (24 MW each) are currently at 60 percent and 73 percent respectively. This is also the case with solar generation.